We all make bad purchases at times; maybe you are still throwing your money away, so we’ll get into the biggest money wasters out there.
If you made a few bad purchases before, it’s not the end of the world. I mean, we are just human, but when it becomes a habit, it becomes dangerous.
Most money problems people have come from poor spending habits, which can easily be fixed most of the time.
The solution is not to make more money; you have to get to the root of the problem, which is terrible spending habits.
Let’s dig deeper into this…
Don’t Waste Your Money On These Things
There are many things people spend money on; some are clear as day, but others are often overlooked and pretty much just turned a blind eye to.
Yes, some things are worth spending money on, but people often use this as an excuse to spend money wildly. The fact is that there are a lot of money wasters that are not worth it.
The things on this list are not meant to judge anyone; it’s simply to be used as an eye-opener as a way to save money.
You might find something on this list that you don’t think is a waste; that’s totally fine; it’s your money.
Let’s get into the biggest money wasters that you should strongly consider getting rid of…
Keeping Debt Around
Debt is one of the biggest money wasters there is!
If you have a 0% interest on your loans, then sure keep your debt around, but most likely, you have to pay interest on your debt.
By keeping your debt around by just paying the minimum payment each month, you can end up paying $ 1,000’s each year in interest!
It’s a massive waste of money, so make sure you pay off your debt as soon as possible, especially your high-interest debt.
Instead of paying interest, you should be making it with the power of compound interest by storing your money in a high-yield savings account and investing it.
Another big money waster is impulsive spending.
Impulsive spending is simply the act of purchasing things that you don’t need or even really want.
It’s pretty much purchases that are made at the moment on emotions because you feel that the purchase will make you happier when most likely it won’t.
It’s just the excitement that takes over someone, and while the item might bring you joy at the moment, it won’t get you true happiness.
So, just think twice before making purchases; it will save you a lot of money!
To get impulsive spending under control, I recommend using the 72-hour rule, which is a strategy that states that you should wait for 72-hours before making purchases you don’t need.
This way, you let the excitement and emotions pass, which most likely leads to not purchasing the item because you don’t want it anymore.
Having Too Much Home
Most people do not really think about this, but having too much home can be one of the biggest money wasters you can have.
I mean, think about it, by buying a big house that you really don’t need, you are most likely paying a higher mortgage and property tax.
Not only that, but it costs more to heat/cool a larger house, plus, it costs money to furnish rooms that you probably will never use.
So, simply choose a house with enough room; if you plan to have kids, then get some more space, but don’t overdo it.
Keeping Up With The Joneses
You probably heard about this phrase before, and if you have, then you know it’s one of the biggest money wasters ever!
Keeping up with the Joneses is a term that describes lifestyle inflation to adhere to the “standards” of those around you.
It’s about comparing yourself to others, and when someone gets a fancy car or house, you “have” to do the same to “keep up.”
It started as comparing yourself to your family, friends, and neighbors, but it’s much worse nowadays due to social media.
Nowadays, we compare ourselves to people we see on the internet that we don’t know and never meet! Do you see how dangerous this is?
People end up purchasing expensive things to impress people they don’t even know!
So, just keep this in mind and don’t waste your money on unnecessary purchases that won’t make you happy.
Racking Up Late Fees
You should avoid late fees with all your might, and it’s pretty easy to avoid them.
Simply set reminders for when your bills are due and pay them on time, or better yet, use autopay, so you don’t have to worry about remembering to pay your bills every month.
If you slip up, just contact your bank or bill provider and ask them to reverse the late fee; if you usually pay on time, they will most likely do this for you.
Late fees are among the biggest money wasters out there, so do your best to avoid them!
Uncessary Extended Warranties
It’s best to skip the extended warranty offered to you when you purchase a product most of the time.
Many companies use extended warranties to make profits from consumers that don’t know any better, so if you choose to get an extended warranty, just make sure it’s really worth it.
Also, many extended warranties have a fine print for things that the warranty doesn’t cover, so just keep this in mind.
Many products come with a standard manufacturer warranty which is usually good enough, so just focus on purchasing good quality items and taking care of them.
No, smoking does not make you cool; all it does is put a dent in your wallet and negatively impact your health.
I know it should be obvious that smoking is terrible, but nicotine is very addictive, which leads to people spending $1,000’s just to be in serious health problems!
Cigarettes and vapes are super expensive and taxed heavily in many states, so just focus on quitting.
Simply focus on your health and save money by quitting smoking.
Using Bottled Water
Yes, bottled water is super convenient, but it’s not worth the cost and impact on the environment.
You can purchase a reusable water bottle and a water filter, which will save you a lot of money in the long run, and you will lessen your carbon footprint.
Just re-fill your water bottle from your water filter, and you’re good to go!
ATM & Transaction Fees
With banking technology today, you should really not be paying ATM fees unless you are in a dire situation.
Most banks have mobile apps that let you find the nearest ATM; this can be in banks or participating stores.
Getting charged to get your own money is unnecessary and one of the biggest money wasters!
If you use cryptocurrencies, just be careful of the fees that cryptocurrency ATMs have, they usually have really high fees, which makes it not worth using.
Getting Traffic Tickets
There is no reason you should be getting traffic tickets; simply slow down and don’t run lights!
Listen, I know that it might happen sometimes, but if you drive carefully and follow the laws, you will drastically limit your chances of getting a ticket.
Not only do you get a costly ticket, but your insurance can also go up as well, so it’s definitely not worth it.
Drive safe and avoid tickets; it’s that simple!
Costly Name Brand Prescriptions
Let’s face it; medicine is super expensive! It is much more than it should be, and the bad thing is that certain name-brand medications are much more costly than the generic version.
So, if you are taking any medications, ask your doctor if there is a generic version available at a cheaper cost.
Usually, a generic version is available that works the same for much cheaper, so just ask.
Where you get your prescriptions from matters as well, some pharmacies are cheaper than others, so keep this in mind.
This has to be one of the biggest money wasters ever! Gambling is pretty much like throwing money down the drain.
I’m not only talking about going to casinos; those scratch-offs and lottery tickets are all a waste.
Now, a few times here and there is fine. I mean, if the lottery is at $700 million, sure, try your luck once or twice but don’t make it a habit.
It is true that the house always wins, so just be very careful with gambling!
It’s best to stay away from casinos; gambling addiction is real, so it’s best not to get hooked on this horrible habit.
Your Unused Subscriptions
Who doesn’t love movies, TV shows, music, books, etc… that you can get in a few clicks?!
The issue with streaming services is that they add up over time! The price of Netflix doesn’t seem too bad, but when you add on Hulu, Disney, Amazon Prime, etc… it becomes costly.
Not only are streaming subscriptions costly, but those subscription boxes are also a big waste of money.
Simply, only keep the subscriptions that you use frequently. It makes no sense to pay for subscriptions every month that you don’t even use!
Gym Membership That You Don’t Use
One of the most unused costs many people have is their gym membership.
Many people pay for a gym membership and slowly stop going over time, which just costs them money for no reason.
If you have a gym membership that you don’t use, then simply cancel it; it’s just costing you money!
You can always get a gym membership later when you use it.
Maybe you don’t even need a gym membership at all. There are plenty of exercises you can do at home which will not cost you a dime!
Overpriced Designer Clothes
One of the biggest wastes of money is expensive designer clothes!
Sure, you can purchase a designer bag or shoes if you really want to treat yourself, but if all you wear is designer clothes and you can’t afford them, it’s a big problem!
You shouldn’t be wearing Gucci every day if you’re struggling to save money; it doesn’t make any sense!
The bulk of your clothing should be affordable, so shop around and get some good deals.
Most people wear designer clothes because they care what people think about them, going back to the “Keeping Up With The Joneses” section.
Stop caring about others and start caring about your finances!
Cars are one of the biggest money wasters. While it’s essential to own one in most cases, you don’t need to buy a new one.
I hate to break it to you, but you don’t need a $100,000 car to go to work just to pay it off. Do you see how this makes no sense?!
Purchase a cheap and reliable vehicle to get from A to B. If you take care of it and maintain it, it will last you a long time.
By doing this, you will save a lot of money!
Why would you pay money to store things you don’t need and will never use?
It sounds insane!
There are some circumstances when a storage unit is worth it, but it’s a big waste of money most of the time.
If you store things you don’t need or want, sell them to pocket some cash and get rid of the storage unit.
Storage costs add up over time and usually get more expensive, so get out now!
Premium Paid Apps
We live in a time where there is an app for pretty much anything, and there are a lot of different apps to choose from.
There is no need to purchase an app; there is most likely a free version that you can use that does the job just as well.
Also, stay far away from those games with in-app purchases. Yes, you can play it for free, but don’t purchase anything in the game because it’s a waste of money!
Cable TV is honestly a thing of the past. It’s so expensive, and you most likely never watch half of the channels provided.
You can use a service like Sling to choose the channels you want for a fraction of cable TV cost.
If you don’t care for live TV, then opt for a streaming service like Netflix or Hulu; just don’t go overboard and purchase all of them!
Cable TV is expensive, and you most likely don’t need it, so just cut cable and enjoy your savings.
There is something out there that decreases the power of your cash; this is inflation.
Inflation is simply the rising costs of goods and services over time, thus decreasing your cash value.
It’s tricky because you don’t have control over inflation, but you can do things to beat inflation or minimize its impact.
You can use a high-yield savings account from a bank like CIT Bank to help keep your money from losing purchasing power.
I also recommend investing your money in the stock market using index funds, real estate, and precious metals.
You can also invest in cryptocurrencies but make sure you do your research before investing in these because there are a lot of scams.
These are things you can do to combat inflation!
Vitamins And Supplements
Vitamins are good, right? Well, yes and no. Sure, go ahead and take a multivitamin but don’t start taking a vitamin or supplement for everything!
Research shows that many vitamins simply do nothing for you, and you will get all the vitamins and minerals you need from a healthy balanced diet.
There are also those herbs and other supplements that are not backed by the FDA and have little research supporting their claims; stay away from these!
Consult with your doctor before taking a bunch of vitamins and supplements. You won’t need them most of the time, and they can also cause health issues if you take too much.
Yes, they smell good but let’s be honest, are they really worth the high price tag? Probably not, especially if you are trying to save money.
Many people claim that essential oils have healing properties, but their science is debatable.
The health industry is big business; everyone wants to be healthier and feel better. Essential oil is an easy sale if someone thinks it can improve their health. But most are essentially useless.
MLMs or multilevel marketing scams use it to take advantage of gullible people. Please save your money and don’t them.
Buying Things On Sale
If you purchase an item for $100 just because it’s on sale, you didn’t save money; you actually lost money.
Don’t purchase things just because they are on sale! This is impulsive buying, and you probably don’t even need or want the item.
Only purchase things you need or really want, not because you are getting a good deal on them.
It may seem like you are saving money now, but you’ll soon realize that you actually wasted money on an item that you won’t even use.
Coupons are the same thing; if you have a coupon for an item you don’t need or want, ignore the coupon. There’s no need to waste your money!
No, I’m not saying that you shouldn’t have a hobby. Hobbies are terrific to have, but if you have a hobby that is out of your budget, then you are in big trouble.
For example, if you are struggling to save money, then you really shouldn’t be racing supercars or traveling the world. Not now, at least.
You should definitely enjoy your life, but you should also be financially responsible; dial it back for now until you are in a better place financially.
Too Many Groceries
One of the highest costs we all have is food, and it doesn’t make sense to purchase food just to throw it away.
This is such a waste of money and good food!
Purchase what you need and will finish. Do your best to cut down on food waste; your wallet and conscience will thank you.
You should stick to a grocery list and don’t go wild purchasing many things you are not going to eat.
Technology is constantly updated, and companies tweak a few things to make it seem like you “need” this new product.
The fact is that you don’t! Yes, it would be best to upgrade over time, but you don’t need a new iPhone every year.
It’s simply not worth it, and new technology goes for insane prices!
A great tip is to purchase tech a model behind. Let me explain…
If the iPhone 50 or whatever just came out, it’s better to purchase the iPhone 49 if you need a new phone because this will be discounted a lot since most people are jumping to get the newer model.
Don’t jump for the new shiny gadget that just came out. Only purchase the tech you really need, which will get the job done.
FOMO (Fear of Missing Out)
Many people waste their hard-earned money on the fear of missing out (FOMO).
This makes people make horrible financial decisions because they don’t want to be left out of the new craze.
FOMO can apply to anything; clothing, games, tech, investments, appliances, etc…
Don’t let emotions control your purchases; think with reason before making any purchase!
Also, don’t let people persuade you into spending your money on whatever it is, do your research and make the decision for yourself based on logic.
FOMO will usually leave you regretting your decision and wishing that you never spent your money.
Now you know of the biggest money wasters out there!
While these are many things you are probably wasting money on, they are not the only things, so just take a look at your spending and make sure you are not spending money on things you don’t need or really want.
Just do whatever you can to save as much money as possible without lowering your quality of life!
Do you have any other money wasters to add? What is one thing you cut out to save money? Let me know in the comments below!